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Can I take a margin from my users on-line transactions ?

New York, NY |

I will be running a website that lets users create events . I was wondering if I could add a feature that allows the event organizer to accept registration fees from attendees through our on-line system . We would take a 5% margin of the transactions before handing them over to the organizer . Of course we would have to tell payees that we take no responsibility for the events .

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Attorney answers 3


It's legal and 5 percent sounds too cheap. Most event organizers would be happy to pay more than that. You should have a professionally written disclaimer, and your agreement with those operating events who post on your site should include an indemnity provision.

If you'd like to discuss, please feel free to call. Jeff Gold Gold, Benes, LLP 1854 Bellmore Ave Bellmore, NY 11710 Telephone -516.512.6333 Email -



What if the event was a tournament and the organizer offered prize money for tournament winners? It's out of our control but it could definitely happen.


This sounds fine..I agree 5% sounds low.

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Of course you can take a percentage for your services. Just have a solid business setup, including strong terms of use and privacy policies. Whenever your software collects user information, you have to be extremely cautious on how you use it and safeguard it. Otherwise the FTC will penalize you severely. See short article for more information.

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